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Ask a Texas REALTOR® campaign
Quick facts for Texas REALTORS® to share
with clients and prospects
With so many misperceptions created by the
national news about the real estate market, you can help Texas consumers
understand what’s really going on in your market. Explaining that real
estate is local and giving consumers facts about Texas and your area will
help alleviate their concerns.
Why Texas is different
Strong, diverse economy:
Texas is strong in industries that are still growing
(such
as professional & business services, education
& health services, government) and has the second largest economy in the
nation by GDP according to the U.S. Bureau of Economic Analysis.
Steady job
growth: According to the U.S. Bureau of
Labor and Statistics, Texas added 153,700 jobs (1.5% increase in
employment) from December 2007 to December 2008, while during the same
time the national unemployment rate rose 2.3%.
Top state to relocate:
According
to Allied Van Lines’ 41st Annual Magnet States Report, Texas is the No. 1
destination state for residential relocations for the 4th year in a row.
New data from the U.S.
Census Bureau confirms that Texas gained more residents (484,000) between
July 2007 and July 2008 than any other state.
Misperceptions created by national news
|
What they hear … |
What they don’t hear … |
|
Median sales prices are down as much as 41% |
That 41% number is from California (Nov. 2008
compared to Nov. 2007). Median sales price statewide is flat in
Texas for the entire year 2008 compared to 2007*
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Average sales prices dropped $115,000 in one year
|
That number is from Arizona. Average sales price
in Texas is unchanged for the entire year 2008 compared to 2007*
|
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Home prices are the lowest in six years and it
takes three quarters of a year to sell a house (Reuters, Jan. 2009) |
Over the last six years, home prices in Texas
have increased 9% in value (median home prices from Dec. 2002 to
Dec. 2008) and in that time have averaged less than 7 months,
sometimes much less, to sell.
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*Source for Texas numbers: Real Estate Center
at Texas A&M University
Statewide facts
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Texas real estate remains a strong
long-term investment. The average home sales price in Texas has
increased $15,600 from December 2004 to December 2008; over the same
four years, median sales prices (half of all homes sold are priced
higher and half are prices lower) increased $8,600.
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Texas
has steady home value appreciation. Sales prices in places like
California, Florida, Nevada, and Arizona have had rapid rises and drops
in values, while Texas prices have remained relatively steady.
-
Texas
homes are more affordable. Using a ratio of average family income
compared to income required to qualify for a loan, the Housing
Affordability Index indicates the proportion of the population that can
afford to buy the average home sold during a certain time period. The
higher the index, the more affordable the housing in that area. See the
Housing Affordability Index Comparison chart below from the Real Estate
Center at Texas A&M.
|
MLS Area |
2008Q3 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
Texas |
1.55 |
1.45 |
1.52 |
1.68 |
1.77 |
1.81 |
1.68 |
|
USA Total |
1.27 |
1.11 |
1.09 |
1.23 |
1.34 |
1.61 |
1.43 |
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Most borrowers are approved.
According to a report by the National Association of REALTORS®,
91% of buyers in Texas were NOT rejected by lenders last year.
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Great rates are available. See chart
below from the Mortgage Bankers Association (MBA) from Jan. 23, 2009 on
mortgage loan rates that are the lowest they have been in decades.
|
Type |
MBA Market Rates |
Freddie Mac Rates |
|
30-Year Fixed Rate |
5.22% |
5.12% |
|
15-Year Fixed Rate |
4.98% |
4.80% |
|
1-Year ARM |
5.96% |
4.92% |
Additional
resources
Your local
association of REALTORS®
and local MLS
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Your
local association of REALTORS®
and local MLS
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Real Estate Center at Texas A&M:
www.recenter.tamu.edu
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TexasRealEstate.com (Inside the News):
www.texasrealestate.com//web/3/31/09
Courtesy of
Texas Realtor Focus, email newsletter
February 4, 2009 |
